Egypt Solar PV Industry

Egypt Solar Photovoltaic (PV) Market Analysis

The Egypt Solar Photovoltaic Market is expected to register a CAGR of 9.05% during the forecast period.

• Over the medium term, factors such as the declining price of solar PV modules, supportive government policies, and increasing energy demand are expected to drive the market.
• On the other hand, the increasing adoption of alternate renewable technology such as wind and hydropower is expected to hinder market growth during the forecast period.
• Nevertheless, Egypt aims to increase the share of renewable energy to around 30% by 2050 to curb the rising carbon emissions. The target is based on Egypt's Vision 2030 plan. Further, the country includes an untapped solar photovoltaic generation capacity of 74,000 TWh annually. Hence, such a scenario is expected to create an opportunity for the market to grow in the upcoming years.

Egypt Solar Photovoltaic (PV) Market Trends

On-Grid is Expected to witness Significant Growth

• The Egypt solar photovoltaic includes an installed capacity of around 1.7 GW in 2022. Out of the total, nearly 90% of the capacity is on-grid, while others are off-grid.
• Egypt connected a large solar energy capacity to the grid over the past few years. Most of this capacity is from large-scale ground-mounted projects. However, several grid-connected small-scale solar system projects are also connected to the grid.
• In Egypt, the New and Renewable Energy Authority (NREA) collaborates with the National Project Grid-Connected Small-Scale Photovoltaic Systems (Egypt-PV) to promote designing and implementing small-scale solar systems with capacities less than 500 KW.
• The Egypt PV project is implemented by the Industrial Modernization Center (IMC) in cooperation with the United Nations Development Program (UNDP) and funded by the Global Environment Facility (GEF).
• In January 2023, AMEA Power announced to start the construction of a 560 MW Abydos Solar Plant in Kom Ombo, Egypt. The project is likely to start commercial operations in quarter 1 of 2025. JA Solar will supply its Deep Blue 3.0 pro-solar modules for the facility, which is expected to generate electricity for USD 0.02 per kWh after completion. This project is the largest single solar PV electricity generation project in Africa.
• Hence, considering the existing and upcoming projects, the segment will likely include a significant presence in the country during the study period.

Supportive Government Policies Expected to Drive the market

• Egypt recognized a clear roadmap to boost its power capacity for the next decade, wherein renewable energy remains a major focus. Renewable energy in the country increased significantly and reached a capacity of 6.3 GW in 2022.
• In 2014, Egypt's adoption of the feed-in-tariff (FiT) scheme to promote solar PV attracted international attention. Industry experts consider Egypt's FiT scheme to significantly boost Egypt's ambitious 2800 MW solar PV capacity target by 2027.
• Besides the supportive government policies for utility-size solar power projects, the government also initiated several initiatives for small-scale distributed solar PV. Some of which are the CoM Initiative and the Egypt-sun Initiative, which promote installing combined efficient lighting and PV systems in government buildings and provide technical assistance to staff in different governorates.
• Hence, considering all the above, the government policies would help the market to drive during the study period.

Egypt Solar Photovoltaic (PV) Industry Overview

The Egypt Solar Photovoltaic (PV) market is moderately fragmented. The key market players (not in particular order) include Egyptian Electricity Holding Company, KarmSolar, Infinity Solar, Cairo Solar, and Scatec ASA.

Egypt Solar Photovoltaic (PV) Market Leaders

Egypt Solar Photovoltaic (PV) Market News

• April 2023: Egypt announced to build a 200 MW utility-scale solar plant in the country, which is expected to be completed by the following year. This Kom Ombo plant will contribute to the government's plant of generating 42% renewable electricity by 2035 in Egypt.
• November 2022: AMEA Power announced that it had achieved a financial close to supplying 1 GW of renewable energy projects in Egypt. The projects include 500 MW solar projects and other renewable energy sources, representing USD 1.1 billion of investment into the country's economy.